Decree 38/2022/ND-CP new regulations on regional minimum wages for employees working under labor contracts in 2022

Social Insurance of Ho Chi Minh City guides the implementation of payment of social insurance, health insurance (HI), unemployment insurance (UI), and insurance for occupational accidents and occupational disease (HIC) in accordance with regulations. Decree 38/2022/ND-CP on regional minimum wages for employees working under labor contracts from July 1, 2022.

Decree 38/2022/ND-CP stipulates the monthly minimum wage and the hourly minimum wage applied to employees working under labor contracts.

I. The objects of application:

1. Employees work under labor contracts in accordance with the provisions of the Labor Code.

2. Employers according to the provisions of the Labor Code, including:

a) Enterprises in accordance with the Law on Enterprises.

b) Agencies, organizations, cooperatives, households, and individuals that hire or employ employees to work for them as agreed.

3. Other agencies, organizations, and individuals involved in implementing the minimum wage rate specified in this Decree.

II. Minimum wage:

◾ Minimum wage is the lowest salary paid to employees who do the simplest jobs in normal working conditions in order to ensure a minimum standard of living for workers and their families, in accordance with working conditions. social economic development.

◾ Employers operating in an area within a region shall apply the minimum wage rate applicable to the regulations in that locality. Suppose the unit or branch operates in different areas with different minimum wages. In that case, the unit or branch operating in each locality shall apply the prescribed minimum wage rate for that area. Units operating in industrial parks or export processing zones located in areas with different minimum wages shall apply according to the areas with the highest minimum wages.

◾ For employees who are receiving salary under other forms of payment (weekly, daily, product-based, package salary), the salary being paid under these salary payment methods converted to monthly or hourly shall not be lower than the monthly minimum wage or the hourly minimum wage prescribed by the Government.

◾ Review the provisions in the labor contract, the collective labor agreement, and the regulations and regulations of the employer to adjust and supplement accordingly; must not remove or reduce salary regimes when employees work overtime, overtime at night, compensation in kind, and other regimes in accordance with the labor law.

◾ For the contents agreed, committed in the contract, labor agreement, or other lawful agreements that are more beneficial to employees than those specified in Decree 38/2022/ND-CP, continue to be implemented, including the salary regime paid to employees who perform jobs or titles through vocational training that is at least 7% higher than the minimum wage, the implementation will continue, except otherwise agreed by the two parties as prescribed by law.

◾  After the employer reviews and adjusts the minimum wage in the month's salary, the salary sheet that the unit has sent to the state management agency in charge of labor on the principle that it must not be lower than the salary level specified in the Decree 38/2022/ND-CP. On that basis, adjust the salary and remuneration rates stated in the labor contract as the basis for payment of social insurance, health insurance, unemployment insurance, and occupational accident and occupational disease insurance for each employee in accordance with the established salary scale and salary table.

◾ No later than July 25, 2022, the employer must submit a dossier to adjust the salary level of social insurance, health insurance, unemployment insurance, and occupational accident and occupational disease insurance for employees according to the new minimum salary (if any). Past the above deadline, if the unit has not adjusted, the social insurance agency will temporarily adjust the salary paid for social insurance, health insurance, unemployment insurance, and occupational accident and occupational disease insurance by the new minimum wage for employees doing the simplest jobs until when the unit prepares an adjustment file according to regulations.

◾ The social insurance agency only confirms the process of social insurance and unemployment insurance and settles benefits when the unit prepares a dossier of minimum wage adjustment in accordance with the above regulations.

 III. The amount of contribution to the occupational accident and disease fund:

🔗 For the policy of reducing the contribution rate to the occupational accident and disease fund equal to 0% of the salary fund as the basis for social insurance payment according to the Prime Minister's Decision No. 23/2021/QD-TTG, which has been implemented for 12 months, from July 1, 2021, to the end of June 30, 2022.

🔗 Therefore,  from July 1, 2022, the employer will pay the occupational accident and disease fund at the rate of 0.5% of the salary fund as a basis for paying social insurance premiums according to Decree No. Decree No. 58/2020/ND-CP stipulates the compulsory social insurance premium payment to the occupational accident and disease fund.

🔗 Employers are requested to strictly follow the above instructions to ensure employees' benefits of social insurance and health insurance. Any delay that affects the settlement of the employee's regime must be fully responsible.

TASCO – THE HIGHEST RESPONSIBLE TAX AGENT OF EVERY SERVICE

Hotline: 0854862446 - 0975480868 (zalo)

Website: https://dailythuetasco.com or https://dichvutuvandoanhnghiep.vn

Email: lienhe.dailythuetasco@gmail.com

Address: 103/15 Nguyen Thi Thap, Tan Phu Ward, District 7, HCMC

Fanpage: https://www.facebook.com/DAILYTHUETASCO

TASCO - GIVE TRUST- GET VALUE